Credit Suisse Investment Banking Pitch Book
CREDIT SUISSE DOES NOT PROVIDE ANY TAX ADVICE | MATERIALS ARE PRELIMINARY AND SUBJECT TO FURTHER CHANGE AND DEVELOPMENTS (WHICH MAY BE MATERIAL)
Hypothetical Osprey standalone financial summary sensitivity
FY'17E-FY'20E per Osprey management as of November 2017
Fiscal year ending 12/31
2018E
2019E
($ in millions)
Adjusted net income
GAAP earnings before tax
(-) Estimated advisor fees (legal and financial) (¹)
(-) Transaction termination fee
Adjusted GAAP earnings before tax
Adjusted effective tax rate
I (-) Adjusted tax provision
- Hypothetical net deferred tax asset write-off
Adjusted net income
Current Osprey management net income
Implied variance in Osprey net income
Adjusted book value roll forward
Adjusted book value (Beginning balance)
(+) Osprey management change in book value
(+/-) Variance in Osprey net income excl. net DTA write-off
(-) Hypothetical net deferred tax asset write-off
(-) Implied incremental dividends (50% payout ratio)
Adjusted book value (Ending balance)
Current Osprey management book value
Implied variance in Osprey book value
Return on average equity ("ROAE")
Adjusted average equity (year-end average)
Adjusted after-tax ROAE
Current Osprey management after-tax ROAE
Implied variance in Osprey after-tax ROAE
2017E
(1)
$28
$28
41.3%
(11)
$16
16
$651
$49
(5)
(15)
$29
66.9%
$10
29
($19)
$651
(21)
(9)
(11)
$611
630
($19)
$631
1.5%
4.5%
(300)bps
$53
$53
30.0%
(16)
$37
31
$6
$611
31
6
(3)
$645
661
($16)
$628
5.9%
4.8%
106bps
2020E
$69
$69
30.0%
(21)
$48
41
$8
$645
41
Calculated based on adjusted GAAP earnings before tax multiplied by Osprey hypothetical marginal corporate tax rate of -30%
Source: Osprey management.
Note: Credit Suisse does not provide any tax advice.
"GAAP denotes Generally Accepted Accounting Principles and "DTA" denotes Deferred Tax Assets.
Estimated advisor fees do not include advisor fees contingent upon consummation of GSO/First Eagle transaction.
Includes hypothetical net deferred tax asset write-off as a permanent difference between GAAP book income and taxable income.
8
$689
702
($13)
$667
7.2%
6.0%
127bps
Confidential
14
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